CPTPP trade deal officially takes effect

At the signing ceremony of CPTPP in Santiago, Chile, on March 8, 2018 (Source: Xinhua/VNA)

Hanoi (VNA) - The 11-member Comprehensive and Progressive Agreement for
Trans-Pacific Partnership (CPTPP) officially came into force on December
30, creating a free trade area covering
more than a tenth of the global economy.

The trade deal, signed in March, is the
successor to the Trans-Pacific Partnership (TPP) Agreement, a similar deal that
included the US. However, President Donald Trump withdrew the US from the TPP
soon after he was elected.

The CPTPP will cut tariffs on agricultural
and industrial products, ease investment regulations and enhance protection of
intellectual property.

The 11 member countries of CPTPP hope that
the trade pact will help counter to growing protectionism.

Australia, Canada, Japan, Mexico, New
Zealand and Singapore became the first six members to ratify the pact, setting
the stage for its entry into force.

The CPTPP is one of the
most comprehensive trade deals ever concluded and strips 98 percent of tariffs
for the 11 countries with a combined GDP of more than 13.5 trillion USD and
close to 500 million consumers.

It is expected to promote economic
growth and poverty reduction, create more jobs and improve the living condition
for the people at member nations.

The trade deal was signed by 11 member states,
namely Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New
Zealand, Peru, Singapore, and Vietnam in Santiago in March 2018.–VNA